Market Volatility Affects Sovcomflot
Russia’s largest shipping company PAO Sovcomflot (SCF Group) has announced its results for the full year to 31 December 2016 that the compay claims to be an example of 'robust strategy delivering solid results despite market volatility in 2016.'
Sovcomflot is one of the world’s leaders in energy shipping as well as in servicing offshore upstream oil and gas projects.
It has reported lower time charter equivalent revenue (TCE) of USD 1,142.2 million (2015: USD 1,240.1 million), EBITDA of USD 706.5 million (2015: USD 780.1 million) and net profit of USD 206.8 million (2015: USD 354.5 million).
Sergey Frank, President and CEO of Sovcomflot said: “Sovcomflot has delivered a solid set of results for 2016, despite market volatility in a year that has severely tested our industry. As growth in oil refinery throughput and up-front demand ran ahead of end-consumption underpinning tanker rates in 2015, so 2016 witnessed a material softening in demand that impacted negatively spot tanker freight rates, albeit with some respite in the final quarter."
Sovcomflot strengthened its position as the World’s largest harsh environment tanker operator through the opportune acquisition of nine well-maintained tankers that became available as part of the PRISCO bankruptcy proceedings, he said.
In 2016 the company successfully introduced three advanced design Arctic shuttle tankers to serve the Novy Port project. These vessels were developed specifically to address the navigational year-round demands of the Ob River Estuary. Their introduction serves to demonstrate the company's desire to work closely with charterers to resolve complex maritime challenges for our mutual benefit. Later in the year one of these three vessels, Shturman Albanov, Sovcomflotawarded the world’s first Polar Ship Certificate.
“With our commitment to operating in some of the world’s harshest environments, in January we were particularly pleased to see the launch of Christophe de Margerie, the world’s first ice-breaking LNG carrier. Together with other developments during 2016, it has strengthened Sovcomflot’s reputation as an owner and operator of some of the most advanced vessels afloat," Evgeniy Ambrosov, Senior Executive Vice-President, Chief Operating Officer of Sovcomflot said.
